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New power system reform program initiated in Shenzhen city

On November 25, the new power reform program was finalized and submitted to the Sate Council. New power reform program has gone through several rounds of discussion in advance of submitting. Earlier, the separation of transmission and distribution was one of the contentious issues, but ultimately it was not accepted in the program. Insider revealed that the program mainly concerned with problems involving in the profit model transformation of power grid companies, incremental electricity sales and distribution side will be available for private capital, to further market reforms, etc.

In the new power reform program, power grid company will charge for transmission and distribution prices authorized by the government instead of based on Feed-in Tariff and retail electricity price differences as a source of income. In addition, the program defined the direction of "trade platform independence". Recently, the NDRC issued the notice for transmission and distribution price reform in Shenzhen city, officially launched the new round of transmission and distribution price reform.